CARE's Valuation of PPMLD structures are opinions on the valuation of a given instrument based on CARE's analysis of the structure and the impact of underlying market variables affecting the structure on the given valuation date.

Indian SMEs face growth constraints due to lack of adequate& timely finance and difficulty to establish credible relations with its stakeholders.
CARE’s SME vertical with its sound data base and analytical abilities offers the various products in this segment to bridge this gap.

CARE undertakes a rating exercise based on information provided by the company,
in-house databases and data from other sources that CARE considers reliable. CARE
does not undertake unsolicited ratings.

NSIC-CARE Performance & Credit Rating For MSEs

This rating indicates the relative level of financial strength and performance capability of an MSE entity compared to other MSEs. It is an issuer-specific rating and not a loan/bank facility-specific rating. It is a one-time assessment of the rated entity.

NSIC – CARE Rating Scales

List of Documents to be submitted with the Application Form

Registration Certificate issused by District Industries Center (DIC)

Partnership Deed / Memorandum & Articles of Association.

Authority letter to sign the application.

List of all partners / directors with their age, address, Net worth / Income Tax Return, qualifications and experience.

Copy of the audited accounts for the last three years (where accounts for the last year has not been audited, provisional accounts duly certified by a Chartered Accountant along with two years audited accounts are to be submitted).

In case of new project / expansion, copy of the project report containing a brief project profile, cost of project and source / means of finance.

Brief write-up about the products manufactured, end users, marketing tie-up and orders in hand.

Details of subsidy and tax concession available to the applicant.

Quality certificates, export awards won and membership of any associations.

Any other information that would enable CARE to understand the business better.

Wider recognition & acceptance as the rating is
published on website & bulletins

Acts as marketing tool with banks and business
partners to build credibility

All registered micro or small enterprises can take advantage of this rating. An MSE certificate issued by the District Industries Center (DIC) authority is a valid proof of eligibility. All types of business entities including limited companies, partnership firms, and proprietorships, trusts, etc are eligible for this rating.

Turnover Wise Rating Fee Structure

(Units with audited results of one complete year of operations)

Turnover wise Fee Structure

Turnover (Rs Lakh)

< 50

50-200

> 200

Rating Fees Under the scheme

27000

45000

60000

Add:Service tax @ 15%

4050

6750

9000

Total Fees

31050

51750

69000

Less: Subsidy From NSIC (Maximum 75%)

15000

30000

40000

Balance Application Fee from MSEs

16050

21750

29000

Concessional Fees #

12000

15000

18000

# For Customers of banks with MOUs with CARE

CARE would provide a rating letter followed by a certificate and rating report on completion of the assignment.

Rating Letter

On completion of the assignment CARE would issue the rating letter which would contain the details pertaining to the rating assigned to the client, its definition and validity of the rating.

Rating Report

CARE would also provide the soft copy of rating report which would contain the key rating considerations, brief snapshot of the rated entity, its business profile and the financial performance analysis.

Certificate

A certificate containing the name of the client along with the assigned rating, its definition and the validity date would be issued.

MSEs rating is valid for one year from the date of the rating, provided no significant changes/events occur during this period that could materially affect the business or financial parameters of the organization. The entity may approach CARE for review on happening of such event and CARE may review the rating for a predetermined fee.

MSEs desirous of getting themselves rated will need to submit the application in a specified format, in duplicate. The Application form should include documents as specified therein. Duly completed application form, addressed to CARE, can be submitted to the nearest NSIC / CARE office. Following this, the rating process will start and the interaction with the management would be initiated. The rating team may require extra information in order to complete the rating exercise. The rating is a one-time assessment based on the information and documents submitted by the entity.The entire process will take about 2-3 weeks after the receipt of full information.